yis business class february - 2012. product development idea invention market feedback other
TRANSCRIPT
YIS Business Class
February - 2012
PRODUCT DEVELOPMENT
IDEA• Invention• Market Feedback• Other
IDEA• Invention• Market Feedback• Other
2-D Drawings • Design Scope• Color
PRODUCT DEVELOPMENT
IDEA• Invention• Market Feedback• Other
2-D Drawings • Design Scope• Color
First Prototype• Design Features• Materials – first pass• Features Evolution
PRODUCT DEVELOPMENT
IDEA• Invention• Market Feedback• Other
2-D Drawings • Design Scope• Color
First Prototype• Design Features• Materials – first pass• Features Evolution
Final Revisions
• Company/Market feedback• Engineering• Materials Decisions• Production location
PRODUCT DEVELOPMENT
IDEA• Invention• Market Feedback• Other
2-D Drawings • Design Scope• Color
First Prototype• Design Features• Materials – first pass• Features Evolution
Final Revisions
• Company/Market feedback• Engineering• Materials Decisions• Production location
Final Samples• Final Costs – Pricing• Final Colors• Sales Samples
PRODUCT DEVELOPMENT
PRODUCT COSTING
FINAL MANUFACTURED
COST
MATERIALSBill of Materials
(B.O.M)
DIRECT LABORBill of Labor
(B.O.L)
OVERHEAD
PRODUCT COSTING
FINAL MANUFACTURED COST (FOB)
FREIGHT,INSURANCE, DUTY, CUSTOMS, MISC
LANDED – DUTY PAID (LDP)
COSTING BASIS – RETAIL PRICING
PRODUCT COSTING
COSTING BASIS – RETAIL PRICING
WHOLESALE MARGINResults in Wholesale Price to DealersProfit margin that goes to company
RETAIL MARGINProfit margin that goes to Retail Store
MANUFACTURER’S SUGGESTED RETAIL PRICEMSRP
PRICING HEIRARCHY
MSRP – Retail Price
WHOLESALE PRICE
COSTING BASIS
Wholesale Margin – 40%
Retailer Margin – 50%
Product A Product B
COST LDP 4,000 7,000 Wholesale Margin Target - 40%Wholesale Price 6,667 11,667 Retail Margin Target - 50%
MSRP 13,333 23,333
Units Units Wholesale 100 Retail 100
Product A Product B Product A Product B Profit and Loss
Sales - Revenue 666,667 1,166,667 1,333,333 2,333,333 60% COGS 400,000 700,000 800,000 1,400,000
Gross Profit/Margin 266,667 466,667 533,333 933,333 SG&A Expenses-W - - - - SG&A exp- R
Pre-Tax Profit 266,667 466,667 533,333 933,333 actual %
Pre-tax 20% Goal 133,333 233,333 266,667 466,667